- Allianz SE (OTC:ALIZY) said it would set aside another €1.9 billion ($2 billion) as it braces for the outcome of U.S. regulatory investigations into a multibillion-dollar trading debacle at its fund's arm.
- The collapse of a $15 billion set of investment funds during the pandemic market turmoil in early 2020 has cast a long shadow over the financial firm.
- The new provision comes on top of €3.7 billion the company set aside in February to cover litigation and U.S. regulatory investigations into the funds' demise. It brings the total to €5.6 billion.
- "The fresh charge clearly shows the enormous damage that has been done," said Ingo Speich, head of sustainability and corporate governance at Deka, a top Allianz investor.
- Allianz said the additional provision should cover the remaining costs it could incur. The sense of certainty suggests a settlement with the U.S. government could be in the offing.
- "This provision booked is a fair estimate of its remaining financial exposure in relation to compensation payments to investors and payments under any governmental proceedings resolution," Allianz said.
- Allianz said it was seeking a "timely" resolution to its talks with the DOJ and SEC.
- Photo by Tumisu from Pixaby
